Residential Mortgage Foreclosure Filings Are on the Rise, but Attorneys Say It’s Not Another 2008
Residential mortgage foreclosures in Philadelphia have risen to nearly their pre-pandemic levels in recent months as COVID-related homeowner protections lift, and while lawyers say they don’t expect foreclosures to rise to Great Recession levels, some say they’re bracing for the fallout.
According to Blank Rome’s Edward Chang, who represents national mortgage services in contested residential mortgage litigation, a huge number of loans nationwide are currently in severe delinquency. He pointed to a February report from data analytics company Black Knight that put the number of loans in the United States that were 90 days past due but not in foreclosure at around 900,000 as of February.
Chang said it’s only a matter of time before those delinquencies lead to foreclosures.
Blank Rome litigation chair Dan Rhynhart said the firm is preparing for an increase in suits arising from foreclosure now that various protections for borrowers have ended.
“What you’ve got now, and you’re starting to see it, is there’s the beginnings of this wave of residential mortgages foreclosures,” said Rhynhart.
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"Residential Mortgage Foreclosure Filings Are on the Rise, but Attorneys Say It’s Not Another 2008," by Aleeza Furman was published in The Legal Intelligencer on May 5, 2022.